Facebook wants ad supported original content

Facebook is finalizing deals for its first group of shows: "Last State Standing" — a reality competition series — and "Loosely Exactly Nicole," which is a comedy that first aired on MTV, according to Bloomberg.

Facebook is not trying to become an SVOD service like Netflix and HBO. The company is more intent on securing content that is more suited towards an ad-supported model. It is looking to develop two kinds of programs, hero shows — more expensive series from established TV producers — and spotlight shows — cheaper and shorter videos from publishers like Vox and Buzzfeed. Facebook's ad supported model will attract upstart production companies with more cost-conscious budgets.

With closing these deals, Facebook continues its efforts to siphon TV ad dollars. Facebook had already started talking to TV studios about licensing shows in December of last year, and hired an MTV executive to head development of original programming in February. Digital advertising spend is likely to overtake TV spend for the first time in 2017, according to Deloitte. Facebook could capitalize on this shift if its revenue sharing model is able to attract more content partners and, more importantly, audiences to its platform.